Grizzly's prices on some machines going up 25%

[Admiral]

Well, this sucks!  I ordered a jointer in June to avoid the tariff increase.  A couple months delay, and I just got an email that the tariffs will be applied anyways. 

I'll be cancelling my order.  Very frustrated with the back order anyways, and then to have the price changed is disingenuous.

I understand your frustration, but I can't see this as the importer's responsibility to eat a tax as they cannot control trade policy.  Look at it as your small sacrifice to MAGA....... 
  In the other thread, Griz said they are bringing manufacture of jointers back to Taiwan to avoid this, so they are aware and are doing something about it.

[AloneInPhx]

I agree, and I wouldn’t expect them to eat it. I’m frustrated that I put my order in before it took effect, which is why this thread was started, and I still ended up with the charge.

I suppose it’s a pet pieve of mine to buy something for one price, and to have the deal changed later. They knew it was back ordered and when they would get the shipment, they should have just told me they’d end up charging me the tariff.

I cancelled the order, and will simply reevaluate my options.

[Papagrizzly]

I agree, and I wouldn’t expect them to eat it.  I’m frustrated that I put my order in before it took effect, which is why this thread was started, and I still ended up with the charge.  

I suppose it’s a pet pieve of mine to buy something for one price, and to have the deal changed later.  They knew it was back ordered and when they would get the shipment, they should have just told me they’d end up charging me the tariff.

I cancelled the order, and will simply reevaluate my options.

The logic is as follows:

1) It was not in stock and so we did not have any at the "old" prices.
2) It was backordered and when you placed your order, you were put in a line behind others that had placed their orders before you. The reason we have a backorder situation is that we have the best prices in the country and cannot keep them in stock. We have exceeded the factory's capacity, although they are in the process of expanding again.
3) We had/have no idea if the tariffs were temporary, so we do not know that by the time your turn comes around, if tariffs will even exist. However, it now appears that the tariffs are here to stay. More products are going to be impacted starting next week. Almost all other big suppliers that get things like compressors and accessories have raised their prices the 25%. We have received notices from several "Name brand" companies we buy from locally that also import stuff from China.

As a further update, we are eating some of the profits and are not charging the full tariff increase to the customers, so they are less than the 25% we were originally going to charge the customers.

We understand your frustration, but cannot do any more than we are. The new Taiwanese machines will be coming in shortly, but they will still be higher in price than the Chinese machines, even with tariffs added. If one cancels their backorder, they are no longer in the line and if they decide again to re-order, they will be added by priority of the newest date they ordered. The original order date for the cancelled order will not be used - just FYI. We have been pretty upfront with everyone about the tariffs and as far as I know, the only company to have raised a red flag informing people about this before our prices went up.

[Bob10]

I agree, and I wouldn’t expect them to eat it.  I’m frustrated that I put my order in before it took effect, which is why this thread was started, and I still ended up with the charge.  

I suppose it’s a pet pieve of mine to buy something for one price, and to have the deal changed later.  They knew it was back ordered and when they would get the shipment, they should have just told me they’d end up charging me the tariff.

I cancelled the order, and will simply reevaluate my options.

Strange they can change the contract after the fact

[AloneInPhx]

I understand the predicament.

Thanks for replying.

As an aside, I was also frustrated that I would call and told I was in line for the next shipment, only to be told on the next call I was on the next months shipment. I don’t think it would have mattered on this tarrif, but back to managing expectations, I don’t like being told/agreeing to one thing, and to have it change adversely.

It seems you knew the product was on back order, and would apply to those which would ship after the tarrif took effect. But you still lead with the price, and even came here and alluded to ‘get your orders in before the increase.’ Had I been told this up front when I called, we’d have the same outcome, but I wouldn’t be less likely to deal with grizzly again. My experience up to this point had been great.

I don’t mean to vent, just hoping others learn from my experience, I certainly appreciate others sharing on this forum.

[Papagrizzly]

I understand the predicament.  

Thanks for replying.

……………………………....  But you still lead with the price, and even came here and alluded to ‘get your orders in before the increase.’  .

"4) An item that is IN STOCK and shipped before July 6th will be at the current price."

This is an excerpt from my message - the very first message in this thread. Sorry, you are unhappy. Can't change that - just trying to give a better overall picture.

[AloneInPhx]

Fair enough, I missed that, thanks!

[EightFingers]

There are two prices: wholesale and retail. Is the tariff caclculated at the wholesale or retail level?
Part of my old job involved sourcing from China (and paying tariffs). Tarriffs were charged on the landed price of the goods. For me, that would have been wholesale. Now a 25% tariff on the wholesale price would not translate into a 25% increase in the retail price. For me, a 25% tariff would end up as a 5-10% retail price increase.
However.
A LOT of my vendors would reduce the landed cost of goods thereby reducing the impact of the tariff. In those cases, there’d be no increase in the retail price to help us stay competitive.

Couple things here: I was sourcing for a huge company ($4bn in sales) and this was five years ago.
Things may be different.

[Admiral]

There are two prices: wholesale and retail. Is the tariff caclculated at the wholesale or retail level?
Part of my old job involved sourcing from China (and paying tariffs). Tarriffs were charged on the landed price of the goods. For me, that would have been wholesale. Now a 25% tariff on the wholesale price would not translate into a 25% increase in the retail price. For me, a 25% tariff would end up as a 5-10% retail price increase.
However.
A LOT of my vendors would reduce the landed cost of goods thereby reducing the impact of the tariff. In those cases, there’d be no increase in the retail price to help us stay competitive.

Couple things here: I was sourcing for a huge company ($4bn in sales) and this was five years ago.
Things may be different.

Bottom line is that these tariffs came out of nowhere, and the retailers have to adjust, the market will take care of pricing.

[packerguy®]

Bottom line is that these tariffs came out of nowhere, and the retailers have to adjust, the market will take care of pricing.

Not so much. Trump started talking about them in Jan 2016. Not too far after his election he put out the idea of "putting america first" when it comes to trade and having fair trade....through tariffs and leveling the playing field (cause he understands their economy needs us buying their crap. We dont need much of it....but they NEED our food exports....we have leverage). In his first week as pres he withdrew out of the TPP.

Anyone that deals internationally, pays attention when these statements are spoken. Now some may think it was a bluff, some took it as reality.

Like I said in my other thread, I think we have two routes. I prefer Grizzlys because its transparent. They say look, here is this tariff, we have to pass it along because we cant eat 25%. I would assume the day they go away (even years from now) they will fall off. The other has a company like JPW (that owns Jet/Powermatic) they raised prices (which they said was planned ahead of time) curiously what the tariffs were, and have no mention of them ( so they are eating them?) so down the road when they fall off, they used it as an opportunity to pad their bottom line, where Grizz isn't. 

Regardless of where Grizz gets their product, it makes me want to deal with them MORE because they are being honest and upfront. If you need to raise prices, fine. But dont play games. 

In the end, none of this was a surprise to people in the market. Now average Joe wanting to by a 1k tablesaw, Im sure it was a blindside if you dont pay attention to basic politics.